Thoughts on LGIH

…even if growth in Texas slows down, it should remain a cash cow for them

Saul, please elaborate on this. I’m not understanding it.

Hi Fungi,
KC was saying that Texas would eventually reach a point where growth in sales would slow down and they would just sell a stable amount each year, growing just with population growth in the State. That’s what I referred to as a cash cow. His hypothesis was that the real growth would come from new markets.

As I understand it a cash cow can refer to a legacy part of a business which is growing more slowly but bringing in regular cash.

Best,

Saul

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